- (1.) THE Facts : M/s. Muzaffarnagar Pipe Industries (P) Ltd., District Muzaffarnagar (the Assessee) manufactures pipe and hollow profiles of Iron & Steel falling under sub -heading No. 7306.90 of the schedule to the Central Excise Tariff Act, 1985 (the Tariff Act).
(2.) THE Assessee's product is manufactured from MS steel. He purchases these inputs from different manufacturers and utilizes modvat credit on the basis of the invoice supplied by them in which an endorsement is made that liability of the excise duty has been cleared off by the manufacturer. A report was received by the Excise department (the Department) that one of the manufacturers namely M/s. Virat Steels (P) Ltd. had not discharged its excise duty. The show cause notices for the period July, 1998 and August, 1999 to December, 1999 were issued to the Assessee.
(3.) IN the show cause notice in respect of July, 1998, the adjudicating of - ficer disallowed the credit utilised by the Assessee. However, by different order in the show cause notice for the period August, 1999 till December, 1999 the proceedings were dropped.;